Nomura Warns UK Growth Dims on Lingering War Shock, Weighing on UK 100

Nomura cautioned on May 8 that a lingering 'war shock' from Ukraine is dimming the UK growth outlook, with sticky inflation likely forcing the Bank of England to maintain restrictive policy longer and pressuring UK 100 equities. This caps earlier optimism from May 6's services PMI at 52.7 (beating prelim 52.0) and composite at 52.6, which signaled modest expansion despite sharp cost rises. However, May 7's construction PMI crash to 39.7 (vs 45.6 expected) highlighted sector contraction, amplifying downside risks amid energy disruptions and subdued demand.